Life insurance is more important and more accessible than you might think.
While most Australians insure assets such as their home or car, when it comes to their most valuable assets – their life and their ability to earn an income, Australians are one of the most underinsured people in the developed world.
The report “Underinsurance in Australia 2015” found that the average sum insured for an Australian as at 30 June 2015 was only $287,022. However the average insurance needs for young parents aged 30 was approximately $700,000 just to provide basic cover, or $1,140,000 to provide an income replacement cover for up to 10 years.
What this means is that in the event of an accident or illness leading to death or permanent disablement, many Australian families would not receive a large enough payout to cover even a year’s income. Imagine how difficult it would be for these families to deal with this unexpected financial pressure at an already emotionally challenging time?
With so many families having nowhere near the level of cover required, it is not surprising that the underinsurance problem is of growing concern. Families with dependent children are likely to be the most significantly impacted when considering the financial consequences of the death or permanent disablement of an individual.
Are you concerned about your level of cover? If so please contact me today for an obligation free meeting. Contact details: 49725177 or email me email@example.com
This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Infocus Securities Australia Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.